Ashland to sell water treatment to private equity for $1.8 billion

12:31 PM MST | February 21, 2014 | Vincent Valk

Ashland announced today it has agreed to sell its water treatment business to private equity firm Clayton, Dubilier & Rice (CD&R; New York) for $1.8 billion, ending a months-long divestiture process. The deal will result in $1.4 billion in net proceeds to Ashland, of which $1.35 billion will go towards a new share repurchase program. The water treatment business generates $1.7 billion/year in revenues, 67% of which is derived from pulp and paper sales and 33% of which is from industrial and municipal water treatment sales. "This divestiture allows us...